NBA commissioner Stern says league should transition to new economic model

NBA commissioner David Stern visited Memphis on Wednesday and took in a Grizzlies game.

In clear and direct terms, NBA commissioner David Stern said Wednesday that the league should transition to an economic model closer to the NFL and its hard salary cap as the players and owners continue to work on a new collective bargaining agreement.

"People would say one of the most competitive leagues is the NFL, and what do you think makes it so competitive?" Stern said, answering a question at FedExForum about whether the NBA had competitive balance under the current agreement. "That's a tough decision to make, but our owners are getting there.

"They want this league to be as competitive as possible and they recognize some teams will lose the edge they have now ... but they accept that for the greater good, that's an end that is desirable."

Stern's comments came toward the end of his one-day trip to Memphis, in which he spoke briefly at the Greater Memphis Chamber's annual lunch and attended the Grizzlies' 113-80 victory over the Charlotte Bobcats. He also spoke to fans for about 30 minutes before the game inside the Grizzlies' practice facility and answered a handful of questions about the health of the league.

"We're having a great season," Stern said. "There are a lot of teams that think they're going to make the playoffs, and this is going to be looked back on as a golden era. All in all, it's a great time to be an NBA fan."

Stern acknowledged, however, that the current negotiations have been "a little bumpy," and while he refused to predict whether a lockout will eat into the 2011-12 season, he made very clear the owners' willingness to take a hard-line stance.

The NBA Players' Association is expected to resist a lower, firmer salary cap, which would potentially drive down salaries.

Stern criticized the current system, where teams can use exceptions to spend above the salary cap and pay a luxury tax — which is redistributed as revenue sharing — to sustain a high payroll. He pointed out that Boston and the Los Angeles Lakers, which played in the NBA finals last season, both had payrolls above the luxury-tax threshold.

"We have to get a better model where all teams are capable of making a profit and all teams can win a championship," Stern said. "If we don't get that, we should be worried."

Another hot-button issue in the talks is whether the NBA will continue to prevent players under age 19 from entering the NBA draft — the so-called "one-and-done" rule — or return to a system that allowed high school players to go straight to the NBA.

Stern indicated that he does not want direct entry from high school, regardless of the impact — positive or negative — on college basketball.

"The issue is for us to see them for another year to make very expensive judgments," he said. "If they go to college, that's fine. If they got to the developmental league, that's fine. If they go to Europe, that's fine. This is a pure business decision; this is not a social policy."

Stern addressed a number of other topics during his visit, including a prediction that the league would have franchises in Europe "within the decade" and NBDL divisions in South America as the game continues to become more popular globally.

Though he wasn't asked specifically about contraction, Stern said he did not consider Memphis a "trouble spot" for the NBA but acknowledged the franchise has work to do in re-engaging potential ticket buyers.

"I'm not worried about their ultimate funding source," Stern said. "They have an owner (Michael Heisley) who is wildly supportive of this team, and he's making improvements now in marketing and sales, and I expect there to be an uptick.

"I think we're going to see a renewed emphasis on sponsorships, sponsor relationships and filling the building."